In many of my conversations with fiscal conservatives, they place an amazing amount of faith in 'the market' to be correct at all times. In the few instances when it does go wrong in the short term (i.e. a big drop in the stock market, property or PS3 bubbles), the market is quick to react and fix it.
And generally that is true. But is isn't always. On Saturday, I paid $30 for a bad haircut and a shave. And I'll do it again in 3 weeks and again next month and the following month and so on and so on.
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